Feb 10 (Reuters) - French tyre maker Michelin MICP.PA forecast on Monday a slightly lower operating income in 2020, saying the forecast did not include the systemic effect of the coronavirus crisis in China.
The Paris-based company, which restarted operations in its three factories in China on Monday morning, also forecast a free cash flow of more than 1.5 billion euros, also without accounting for the epidemic's effects.
The death toll from the epidemic rose to 908 on Monday, as employees began trickling back into offices and factories around China after the government eased some restrictions on work and travel. reported a 2019 segment operating income of 3.01 billion euros in 2019, up 179 million euros at constant exchange rates, and roughly in line with analysts' estimates of 3.02 billion euros.
The group said volumes fell 1.2%, in line with overall markets, while its structural free cash flow beat guidance at 1.62 billion euros.
"In 2019, in a highly unstable environment, Michelin successfully maintained its market share and improved its earnings," said Managing Chairman Florent Menegaux.
Michelin said it expected a slight decline in its 2020 passenger car and light truck tyre markets, while truck and off-road tyre markets should continue to soften.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.